TD Bank Reports Strong Q2 Adjusted Earnings, Hikes Dividend, and Advances Share Buyback
TD sits 65% above its 52-week low of $68.03.
Summary
TD Bank reported strong adjusted Q2 2026 earnings, increased its quarterly dividend, and continued its share buyback program, signaling positive financial performance despite ongoing AML remediation efforts and a one-time portfolio adjustment.
Key Events · Earnings and Guidance · TD
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Strong Adjusted Q2 2026 Financial Results
Adjusted diluted earnings per share increased 21% year-over-year to $2.38, and adjusted net income rose 15% to $4.168 billion, reflecting strong core business performance.
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Quarterly Dividend Increase
The Board approved a quarterly dividend of $1.12 per common share, an increase from the previous $1.08, payable on July 31, 2026.
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Significant Share Buyback Program Execution
The bank repurchased 23.2 million shares for $3.1 billion under its 2026 Normal Course Issuer Bid (NCIB) from January 20, 2026, to April 30, 2026, returning capital to shareholders.
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Improved Credit Quality
Provision for Credit Losses (PCL) decreased by $340 million year-over-year to $1.001 billion, with a significant reduction in performing PCL build, indicating better credit conditions.
Analysis · TD · Finance
TD Bank delivered robust adjusted financial results for Q2 2026, with significant year-over-year growth in adjusted earnings per share and net income. The announced dividend increase and substantial share repurchases demonstrate management's confidence and commitment to shareholder returns. While the ongoing AML remediation program and a one-time charge related to the Nordstrom credit card portfolio present challenges, the overall financial performance and improved credit quality are strong positive indicators for the bank's operational health and future outlook.
At the time of this filing, TD was trading at $112.21 on NYSE in the Finance sector, with a market capitalization of approximately $189.6B. The 52-week trading range was $68.03 to $113.51. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.